Are you looking for an angel investor for an
entertainment film business?
Many times entrepreneurs find that angel investors are
the best source of funding for their early stage businesses. Business angel investors look for high-growth
companies and expect high returns to offset their high risk.
The film entertainment business is especially high risk,
and to minimize this risk you must come up with an excellent plan of
action. When you have decided on a
project, you must decide on how you will distribute your product. You will need to show potential angel
investors that the distribution channels you have chosen have taken on films
similar to yours in the entertainment industry and had success.
Typical sources of financing in the entertainment (film)
industry
- Studio development production
deals
In these deals the studio usually ends up with most of the
rights associated with your film. The best way to proceed with this type
of deal is with the help of an experienced entertainment film attorney.
- Pre-sales
A deal is called “pre-sale” when the rights to distribute
the film are sold before production begins. The sale is made based on the
script and casting.
- Negative Pick-Up Deals
This is a deal in which the studio agrees to purchase the
movie from the producer at a particular time at a given date for a fixed
sum. The producer picks up the cost until the purchase, including any
additional costs if the film is over budget. A bank loan can then be
secured since the studio has agreed to buy the movie rights.
- Banks specializing in film
finance
Some banks and even insurance companies (Metlife, Mariner,
AIG) have financed films. Many times the ability to borrow funds depends
on the size of the studio.
- Superangels
When you are searching for an angel investor that deals in
the entertainment film industry, you will probably need a “superangel.”
These angels have the ability to invest larger sums of money than typical
angels. That is, they may be able to provide anywhere from $500,000 to
several million dollars in a deal.
Tips For Approaching an Angel Investor in the Film
Entertainment Business:
Before an angel investor will consider your business, you
would be wise to get experience working in the film industry. It is difficult to run a film company without
ever having been involved with one. In
addition, there are a limited number of angel investors that actively seek an
entertainment film business to invest in, so finding them can prove difficult.
Procuring an angel investor with experience in the film
entertainment industry may be even better than the more traditional routes
because of the insight and contacts they have developed. You may need to give up more, but in the end
it will probably make the most sense because of the nature of the entertainment
film business.
You should realize that getting angel investing is a long
process that requires you to spend some money in the process. You should also be personally invested film
business to show investors you have “skin in the game.”
How can the Go BIG Network help?
One option for finding these angels is to visit
www.goBIGnetwork.com. The Go BIG Network
connects investors, entrepreneurs, job seekers, advisors, and any others in the
startup community. You can search for Go
BIG members that invest in the entertainment industry, along with location,
funding amount, and other preferences.
When you purchase a subscription, you can access the contact information
for the angel investors that interest you.
If you prefer to make life easier, you can post a
“Request” which allows interested angel investors to contact you. A “Request” is a brief advertisement for your
company that gets sent to investors that want to be aware of opportunities like
yours.
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Finding funding in the film industry is tough. Remember to be persistent and try to use all available options to get sufficient capital. It's up to you to go out and get everything you need to produce a film. So stop reading and start finding investors!
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